Oil and defence in, Crocs and Starbucks out: Top shares as traders rejig portfolios on Iran battle

Investors are shaking up their portfolios to back oil and defence amid conflict in the Middle East, while ditching well-known consumer brands. 

They are shifting their cash into companies such as US oil giant Chevron and drones firm Kratos Defense and ditching the likes of Crocs and Starbucks, new research by investment platform Etoro has revealed. 

The US-Israeli conflict with Iran has driven up the price of oil after the vital shipping artery, the Strait of Hormuz, was effectively closed. 

Oil is now sitting at $100 a barrel compared to $64 a year ago, sending pump prices spiralling.

Chevron has unsurprisingly seen a 64 per cent increase in holders this quarter, making it the biggest riser among Etoro’s UK users. 

The company is also one of the few US oil firms operating in Venezuela, meaning it is well positioned to access the country’s vast oil reserves after the US captured its President, Nicolás Maduro. 

Energy companies Shell and ExxonMobil also saw sharp rises in holders, coming in third and sixth place in Etoro’s top ten list, which captures the first three months of 2026. 

Investors continued to bet on artificial intelligence’s growth, with USA Rare Earth seeing a 60 per cent jump in holders.

Surge: The US-Israeli war with Iran has driven up the price of oil after the vital shipping artery, the Strait of Hormuz, was effectively closed

Rare earth metals are crucial for the manufacture of high-tech products from semiconductors to weapons but are also key for AI development and data centres. 

China’s tightening export controls have heightened the importance of a secure rare earth metal supply, Etoro said. 

Defence stocks have traditionally attracted investor interest during periods of war – and the conflict we are seeing across the globe now is no different. 

The US defence and security solutions firm Kratos ranked fourth with a 39 per cent increase in holders, while AeroVironment and RTX Corporation saw a 34 per cent and 33 per cent rise respectively. 

But investors have moved away from consumer names such as Crocs and Starbucks. Crocs saw a 16 per cent loss in holders and Starbucks saw a 14 per cent drop. 

US retailer Target saw the sharpest fall at 16 per cent, while media company Warner Bros Discovery saw a 15 per cent loss in holders. 

The sharp rise in the price of oil has stoked fears of inflation, which could cut household spending affect the bottom line of major retailers. 

It could particularly hurt spending on non-essentials such as clothing, entertainment and coffee.  

The United Parcel Service also struggled, losing 14 per cent of its holders on Etoro amid higher shipping costs. 

Investors are still backing the top three most widely held stocks, which were NVIDIA, maker of chips for AI data centres, electric car manufacturer Tesla and logistics giant Amazon. 

Lale Akoner, global market strategist at Etoro, said: ‘Increasing selectivity in the AI and technology sector is becoming more evident, as we can see from the top stocks data. 

‘What we’re seeing is a shift from broad exposure to selective positioning, with capital concentrating in companies that can either enable AI or sit at the application layer where monetisation is clearer.

‘At the same time, UK retail investors are moving further down the value chain. AI is placing real strain on underlying infrastructure. 

‘The growing focus on memory and storage, reflected in names like Micron, highlights how these second-order effects are becoming increasingly investable.’